Munich Re reported a net result of €930 mn in Q3 2024, a decline due to higher-than-average natural catastrophe losses. Munich Re faced €500 mn losses from Hurricane Helene.
For 9M 2024, net earnings totaled €4.692 bn. Insurance revenue from contracts rose to €15.496 bn for Q3 and €45.510 bn for Q1–3, driven mainly by organic growth across all segments.
The total technical result fell to €1.651 bn, down from €2.221 bn. Currency losses, primarily from the US dollar, led to a currency result of -€383 mn.
Operating profit declined from €1.776 bn last year to €1.194 bn, with an effective tax rate of 18.2% (down from 32.6%). Equity increased to €31.425 bn from €29.772 bn at the year’s start. The solvency ratio improved to 292%, well above the optimal range of 175–220%.
The annualized return on equity (RoE) stood at 11.7% in Q3, compared to 16.0% in 2023, and 20.1% for Q1–3 (up from 16.6%). CFO Christoph Jurecka stated that despite significant hurricane-related losses, the overall financial health remains robust, and Munich Re expects to surpass its €5 bn net profit target for 2024.
Reinsurance Segment
Reinsurance net result for Q3 was €766 mn, lower than €995 mn in Q3 2023. The nine-month figure reached €3.993 bn, up from €2.950 bn last year. Reinsurance revenue rose to €10.224 bn, compared to €9.456 bn in the prior year. The total technical result was €1.119 bn, and operating profit declined to €956 mn.
Life and Health Reinsurance
The total technical result was €428 mn, close to the €440 mn figure from Q3 2023. Net results increased to €391 mn from €351 mn. Insurance revenue expanded to €2.936 bn from €2.610 bn, meeting expectations.
Property-Casualty Reinsurance
Q3 net result for this segment was €375 mn, down from €644 mn in 2023. Revenue from issued contracts climbed to €7.288 bn. The combined ratio worsened to 90.5%, compared to 82.0% the previous year. However, for Q1–3, the ratio improved to 82.0% (83% in 2023).
Major-loss expenditure surged to €1.609 bn, up from €770 mn in 2023, with natural catastrophe losses comprising €1.384 bn.
Hurricane Helene alone led to €0.5 bn in claims, while several Canadian events caused similar expenses. Provisions of €351 mn for prior-year basic claims were reversed, representing 5.0% of net insurance revenue.
Munich Re’s strategic approach remains conservative, recognizing provisions at the high end of estimates to allow for future gains from reversals.
